-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, U1Fmu8/qv2danfiVZAkD1FNTZkW3Adc5tGS/VmuC5NiuZVrljiwNOM1FhgWbSDUR zbzFI7FcrP6zoDPAOvkNCg== 0000928385-95-000236.txt : 19950803 0000928385-95-000236.hdr.sgml : 19950803 ACCESSION NUMBER: 0000928385-95-000236 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950801 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950802 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WORLDCORP INC CENTRAL INDEX KEY: 0000811664 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, NONSCHEDULED [4522] IRS NUMBER: 943040585 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-09591 FILM NUMBER: 95558181 BUSINESS ADDRESS: STREET 1: 13873 PARK CTR RD STE 490 CITY: HERNDON STATE: VA ZIP: 22071 BUSINESS PHONE: 7038349200 MAIL ADDRESS: STREET 1: 13873 PARK CENTER ROAD CITY: HERNDON STATE: VA ZIP: 22071 8-K/A 1 FORM 8-K/A =============================================================================== SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------- FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): June 8, 1995 WorldCorp, Inc. (Exact name of registrant as specified in charter) DELAWARE 1-5351 94-3040585 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification Number) 13873 Park Center Road, Suite 490, Herndon, VA 22071 (Address of Principal Executive Offices) Registrant's telephone number, including area code: (703) 834-9200 =============================================================================== Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (b) Pro Forma Financial Information WORLDCORP, INC. PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET ASSETS (IN THOUSANDS) (Unaudited)
Pro Forma March 31, Pro Forma March 31, 1995 Adjustments 1995 ----------- ----------- ----------- CURRENT ASSETS Cash and cash equivalents, including $1,424 restricted cash at March 31, 1995 $ 7,922 $ 60,239 /(a)/ $ 68,161 Restricted short-term investments 662 662 Trade accounts receivable, less allowance for doubtful accounts of $83 at March 31, 1995 3,050 3,050 Other receivables 3,251 3,251 Prepaid expenses and other current assets 7,790 7,790 Assets held for sale 2,500 2,500 -------- --------- ------- Total current assets 25,175 60,239 85,414 -------- ------- --------- ASSETS HELD FOR SALE 11,290 11,290 EQUIPMENT AND PROPERTY Flight and other equipment 31,333 31,333 Equipment under capital leases 12,108 12,108 -------- ------- 43,441 43,441 Less accumulated depreciation and amortization 13,526 13,526 -------- ------- Net equipment and property 29,915 29,915 -------- ------- LONG-TERM OPERATING DEPOSITS 14,733 14,733 OTHER ASSETS AND DEFERRED CHARGES 8,940 8,940 INTANGIBLE ASSETS 10,458 (1,931) /(b)/ 8,527 -------- ------- ------- TOTAL ASSETS $ 100,511 $ 58,308 $ 158,819 ======== ======= ======== (Continued)
* See Note to Pro Forma Condensed Consolidated Financial Statements WORLDCORP, INC. PRO FORMA CONDENDSED CONSOLIDATED BALANCE SHEET (CONTINUED) LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT (IN THOUSANDS EXCEPT SHARE DATA) (Unaudited)
Pro Forma March 31, Pro Forma March 31, 1995 Adjustments 1995 ----------- ----------- ---------- CURRENT LIABILITIES Notes payable $ 17,210 $ 17,210 Current maturities of long-term obligations 10,375 10,375 Deferred aircraft rent 925 925 Accounts payable 9,720 9,720 Unearned revenue 16,649 16,649 Accrued maintenance in excess of reserves paid 5,284 5,284 Accrued salaries and wages 7,991 7,991 Accrued interest 2,571 2,571 Accrued taxes 1,830 1,830 --------- ---------- -------- Total current liabilities 72,555 72,555 --------- ---------- -------- LONG-TERM OBLIGATIONS, NET Subordinated convertible debt 65,000 65,000 Subordinated notes, net 24,947 24,947 Deferred aircraft rent, net of current portion 1,437 1,437 Equipment financing and other long-term obligations 16,347 16,347 --------- -------- Total long-term obligations, net 107,731 107,731 --------- -------- OTHER LIABILITIES Deferred gain from sale-leaseback transactions, net of accumulated amortization of $32,610 at March 31, 1995 8,107 8,107 Accrued postretirement benefits 2,437 2,437 Accrued maintenance in excess of reserves paid 4,672 4,672 Other 422 422 --------- -------- Total oth 15,638 15,638 --------- -------- TOTAL LIABILITIES 195,924 195,924 --------- ---------- ------- MINORITY INTEREST -- 12,516 /(c)(d)(e)/ 12,516 STOCKHOLDERS' DEFICIT Common stock, $1 par value (60,000,000 shares authorized, 15,861,870 shares issued and 15,799,285 shares outstanding at March 31, 1995) 15,862 15,862 Additional paid-in capital 40,127 40,127 Deferred compensation (1,279) (1,279) Accumulated deficit (148,260) 45,792 (102,468) ESSOP guaranteed bank loan (1,523) (1,523) Treasury stock, at cost (340) (340) --------- ---------- --------- TOTAL COMMON STOCKHOLDERS' DEFICIT (95,413) 45,792 (49,621) --------- ---------- --------- TOTAL LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT $ 100,511 $ 58,308 $ 158,819 ========= ========== ==========
* See Note to Pro Forma Condensed Consolidated Financial Statements WORLDCORP, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS EXCEPT SHARE DATA) (UNAUDITED)
Pro Forma For the three For the three months ended months ended March 31, Pro Forma March 31, 1995 Adjustments 1995 --------- ----------- --------- OPERATING REVENUES Contract flight operations $ 39,384 $ 39,384 Flight operations subcontracted to other carriers 693 693 Other 487 487 Transaction processing-US Order 745 745 ------- ------- Total operating revenues 41,309 41,309 ------- ------- OPERATING EXPENSES Flight 12,905 12,905 Maintenance 8,013 8,013 Aircraft costs 13,522 13,522 Fuel 3,086 3,086 Flight operations subcontracted to other carriers 667 667 Depreciation and amortization 1,530 1,530 Selling and administrative 5,400 5,400 Transaction processing-US Order 1,834 1,834 ------- ------- Total operating expenses 46,957 46,957 ------- ------- OPERATING LOSS (5,648) (5,648) ------- ------- OTHER INCOME (EXPENSE) Interest expense (3,171) (3,171) Interest income 163 163 Other, net 202 202 ------- ------- Total other income (expense) (2,806) (2,806) ------- ------- LOSS BEFORE INCOME TAXES AND MINORITY INTEREST (8,454) (8,454) INCOME TAX EXPENSE -- -- MINORITY INTEREST -- 545 /(e)/ 545 ------- ------- NET EARNINGS (LOSS) $ (8,454) $ 545 $ (7,909) ======= ======= ======= LOSS PER COMMON AND COMMON EQUIVALENT SHARE Primary $ (0.55) $ 0.04 $ (0.51) ======= ======= ======= Fully diluted $ * $ * ======= ======= WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING Primary 15,477,596 15,477,596 ========== ========== Fully diluted * * ========== ==========
* Fully diluted earnings per share are anti-dilutive * See Note to Pro Forma Condensed Consolidated Financial Statements WORLDCORP, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS EXCEPT SHARE DATA)
(Unaudited) Pro Forma For the twelve For the twelve months ended months ended December 31, Pro Forma December 31, 1994 Adjustments 1994 --------- ----------- ---------- OPERATING REVENUES Contract flight operations $ 196,218 $ 196,218 Flight operations subcontracted to other carriers 5,378 5,378 Other 1,412 1,412 Transaction processing - US Order 1,432 1,432 -------- -------- Total operating revenues 204,440 204,440 -------- -------- OPERATING EXPENSES Flight 65,372 65,372 Maintenance 26,212 26,212 Aircraft costs 53,860 53,860 Fuel 31,628 31,628 Flight operations subcontracted to other carriers 5,549 5,549 Depreciation and amortization 5,212 5,212 Selling and administrative 24,635 24,635 Transaction processing - US Order 10,681 10,681 -------- -------- Total operating expenses 223,149 223,149 -------- -------- OPERATING LOSS (18,709) (18,709) -------- -------- OTHER INCOME (EXPENSE) Interest expense (12,154) (12,154) Interest income 863 863 Loss on investments, net (308) (308) Gain on sale of US Order banking operations 14,547 14,547 Gain on sale of World Airways, Inc. stock 26,922 26,922 Other, net (665) (665) -------- ------- -------- Total other income (expense) 29,205 29,205 -------- ------- -------- EARNINGS BEFORE INCOME TAXES, MINORITY INTEREST, EXTRAORDINARY ITEM AND CHANGE IN ACCOUNTING PRINCIPLE 10,496 10,496 INCOME TAX EXPENSE 159 159 MINORITY INTEREST (2,029) (1,477)/(d)/ (3,506) -------- ------- -------- NET EARNINGS $ 8,308 $ (1,477) $ 6,831 ======== ======= ======== EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE Primary $ 0.54 $ (.10) $ .44 ==== ==== ==== Fully diluted $ 0.53 $ (.10) $ .43 ==== ==== ==== WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING Primary 15,516,063 15,516,063 ========== ========== Fully diluted 15,793,046 15,793,046 ========== ==========
* See Note to Pro Forma Condensed Financial Statements WORLDCORP, INC. SUMMARY The pro forma condensed consolidated balance sheet reflects the adjustments necessary to record the sale of 30.2% interest in US Order, Inc. as if the sale had occurred as of January 1, 1994. The pro forma condensed consolidated income statements reflect the minority interest income which would have been received for the twelve months ended December 31, 1994 and the three months ended March 31, 1995 as if the transaction described in Note 1 had occurred as of January 1, 1994. No pro forma adjustments have been made for possible interest cost savings from the proceeds received at the time of the sale. DESCRIPTION OF PRO FORMA ADJUSTMENTS (a) Record cash received from the sale of an interest in US Order, Inc. $18.6 million of this amount is received by WorldCorp, Inc. in exchange for 1,365,000 of its common stock in US Order, Inc., and $41.6 million is received by US Order, Inc. from the sale of 3,062,500 shares of its common stock. (b) Reverse a pro rata portion of goodwill related to US Order. (c) Establish minority interest portion from sale of US Order, Inc. (d) Portion of US Order, Inc. 1994 net income which is allocated to the minority interest. (e) Portion of US Order, Inc. net loss for three months ended March 31, 1995 which is allocated to the minority interest. (c) Exhibits 23.1 Consent of KPMG Peat Marwick LLP 99.1 WorldCorp, Inc. Press Release issued June 2, 1995. * See Note to Pro Forma Condensed Consolidated Financial Statements Note to Pro Forma Condensed Consolidated Statement of Operations Note 1 Sale of US Order Common Stock On June 8, 1995, WorldCorp, Inc., (the "Company") closed its equity carve-out of US Order, Inc., ("US Order"). The Company sold in a public offering 1,365,000 shares of common stock ($.001 par value) of US Order at $14.75 per share. US Order sold 3,062,500 shares for its own account. Prior to the US Order offering, the Company's beneficial ownership in US Order was 88%; subsequent to the offering, the Company owns 8,832,844 shares of common stock, with a beneficial ownership of 61% in US Order. As a result of the WorldCorp sale of US Order common stock the Company recognized a gain of approximately $19.7 million. As a result of US Orders sale of common stock, the Company recognized a gain of approximately $27.0 million. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. WorldCorp, Inc. /s/ Andrew M. Paalborg ---------------------- Andrew M. Paalborg Vice President & General Counsel Date: August 1, 1995 -----END PRIVACY-ENHANCED MESSAGE-----